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trapecia [35]
3 years ago
12

One year ago, your company purchased a machine used in manufacturing for $110 000. You have learned that a new machine is availa

ble that offers many advantages; you can purchase it for $150 000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenue minus operating expenses other than depreciation) of $40 000 per year for the next 10 years. The current machine is expected to produce a gross margin of $20 000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $10 000 per year. The market value today of the current machine is $50 000. Your company’s tax rate is 30%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace its year-old machine?
Business
1 answer:
soldier1979 [14.2K]3 years ago
8 0

AnswerNo replacing the machine is a very bad business skill the machine is to serve the purpose of making the amount use in getting it

Explanation:

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A lower expected return means a higher risk will have to be accepted. true false
Alex777 [14]

The statement "A lower expected return means a higher risk will have to be accepted. " Is false. This is further explained below.

<h3>What is the expected return?</h3>

Generally, According to the proverb, "A lower projected return indicates a bigger risk will need to be taken." Is false

In conclusion, The amount of profit or loss that an investor might anticipate obtaining as a result of the investment is referred to as the anticipated return. To get an anticipated return, first, multiply all of the possible outcomes by the percentage chance that each one will occur, and then add up all of those products. It is impossible to provide a guarantee on expected returns.

Read more about the expected return

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8 0
2 years ago
It has been a great year at Capital Funding, Inc., an SEC-registered broker-dealer that is also registered in 22 states. The com
sergey [27]

Answer:

Option D would be the appropriate alternative.

Explanation:

  • A broker dealer would be a company or organization engaged throughout the purchase as well as the sale of securities within its multiple occasions or even on behalf of the participants.
  • Brokerage serves as an intermediary whenever it implements order information on behalf of the shareholders while acting mostly as a dealer or superintendent whenever it exchanges on one's consideration.

Other choices available aren't connected to that same scenario in the statement. So the answer here is just the perfect one.

3 0
3 years ago
Write a statement that increments total by the value associated with amount . That is, add the value associated with amount to t
marishachu [46]

Answer:

total = total + amount

Explanation:

The statement that increments total by the value associated with amount i.e add the value associated with amount to that associated with total and assign the result to total is:

total = total + amount

4 0
3 years ago
A magazine publisher collects one year in advance for subscription revenue. In the year of providing the magazines to customers,
photoshop1234 [79]

Answer:

The correct answer is letter "B": A decrease in a deferred tax asset.

Explanation:

A Deferred Tax Asset is an asset on a balance sheet of a business that can be used to lower taxable income. It is the opposite of deferred tax liability that reflects something that will increase income taxes. Both are listed under current assets on the Balance Sheet.

The deferred tax asset will be generated when recorded income taxes owed are higher than the income taxes paid to the Government.

Thus, <em>a decrease in deferred tax is recorded when a company has collected revenue in advance for a good not delivered or a service not rendered yet.</em>

5 0
3 years ago
Mr. A owned 75% of the voting stock and 85% of the nonvoting stock of Corporation Y. Mr. A transferred property with a fair mark
Lena [83]

Answer:

$0

Explanation:

Since Mr. A already owns 75% of common stock (and 85% of nonvoting stock), the extra 5% will result in a total of 80% (and 90%), that means that he cannot recognize any loss or gain resulting from this transaction. This applies to all stockholders that own at least 80% of a company's stocks and transfer property in exchange for more stocks.

5 0
3 years ago
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